A debit balance is a record of the total amount of money owed to a creditor, while a credit balance is a record of the total amount of money owed to the debtor. In a business context, when you owe money to someone (e.g., purchase goods or services on credit) it is recorded as a debit balance in your books. When you are owed money by someone (e.g., they owe you money for goods or services you sold them) it is recorded as a credit balance in your books.
In other words, a negative debit balance represents money you owe, while a positive credit balance represents money you are owed. As such, balancing these two entries against each other helps keep accurate track of your business’s financial health.